‘Stock market improving as govt resolved issues’
The finance minister called on stakeholders and entrepreneurs to come forward with their relevant issues to help to build a stable capital market
The capital market is improving after some of its issues have been resolved, and the government will address all other problems it has been facing, said Finance Minister AHM Mustafa Kamal.
The stakeholders and entrepreneurs, too, should come forward with their relevant issues in order to cooperate with us to build a stable stock market, he also said.
"We want to work jointly to help the market move forward," he added.
The minister made the remarks at a webinar titled "The Role of Capital Market for Bangladesh's Development" organised by Bangladesh Securities and Exchange Commission (BSEC) on Saturday.
Finance Minister AHM Mustafa Kamal was present there as a chief guest. Salman F Rahman, the private sector industry and investment advisor to the prime minister, was the special guest.
BSEC Chairman Professor Shibli Rubayat-Ul-Islam chaired the webinar.
Mustafa Kamal said the country has been developing owing to different effective policies taken by the government in the last 10 years.
"We are trying to find out the places of our capabilities and use them. We hope to keep up the development pace even though the entire economy has been hit by the Covid-19 pandemic."
He also said the stimulus packages announced by the prime minister played an important role in recovering the country's economy.
Salman F Rahman said the capital market has been developing after the new commission joined the BSEC. "Recently, some policies have been taken which we really wanted."
Remarking that the characteristics of Bangladesh's stock market are "peculiar", he said only over 80% of the market is captured by small investors against only 10-20% by institutional ones while, in developed markets globally, 80-90% is controlled by institutional investors.
"As a result, we need to increase the number of institutional investors right now. For that reason, the securities regulator should provide investment banking licences to banks.
He also said entrepreneurs are facing lots of problems with National Board of Revenue about tax issues, and FDI and domestic investments will not grow if these problems are not resolved.
Salman criticised the approval of Walton Hi-Tech Industries' Initial Public Offering for issuing below 1% share in the public.
Professor Shibli Rubayat Ul Islam said they would ensure a fact that service is provided in the shortest possible time to the entrepreneurs and investors as part of the ease of doing business.
"We will ensure good governance in the capital market to protect investors," he added.
Dr Mizanur Rahman, commissioner of BSEC, was the keynote speaker at the event. He highlighted the role of the securities regulator for a steady capital market.
Sheikh Kabir Hossain, chairman of Central Depository Bangladesh Limited, said, "We need transparent and trustworthy audit reports for the capital market, but we have not got it."
He demanded bringing the auditors under accountability to ensure it as well as with recommended establishing a reinsurance to develop the insurance sector of the country.
The webinar was held under the World Investor Week (WIW). WIW is a week-long, global campaign promoted by IOSCO to raise awareness about the importance of investor education and protection and highlight the various initiatives of securities regulators in these two critical areas.
Ashadul Islam, senior secretary of the Banks and Financial Institutions Division, Barrister Nihad Kabir, chairman of the Metropolitan Chamber of Commerce and Industry, Yunusur Rahman, chairman of Dhaka Stock Exchange, Asif Ibrahim, chairman of Chattogram Stock Exchange, Sayedur Rahman, president of Bangladesh Merchant Bank Association, Azam J Chowdhury, and others spoke on the occasion.